Refinancing Advice For Active Duty Marine

by David from Camp Lejeune, North Carolina USA

Refinancing advice for active duty Marine: Hi Kate, I am a Marine stationed in Camp Lejeune, NC with my wife Samantha. We bought our home while i was deployed last year for $86,000. However, there were several bills that got overlooked while I was deployed due to the temporary address change of my wife when she moved home while I deployed.



Unfortunately, those overlooked bills did a number to my credit. My 30 year mortgage is a VA loan through a major lender. Would it be a good idea for me to refinance now to hopefully make my payment a little easier?

I got a letter in the mail advertising refinance for some sort of 3/1 hybrid rate as low as 3.875% due to the new stimulus bill. I have made improvements to my home and I am pretty sure I have equity built up. Just looking for suggestions. Thank you! David

Kate Answers: Refinancing Advice For Active Duty Marine

Dear David,

First a sidebar: For non-military reading this, I want to tell you how often the credit of our military is affected while deployed. Our military families have to live with the effects and it often makes their mortgage payments higher. Again, as I said earlier today, if I had a communication hotline to the White House...

Now back to your letter, David. Is the difference between your current payment and a payment if you refinanced worth giving up security?

I don't know how much lower your payment would be under a 3/1 hybrid compared to your current mortgage which sounds like a fixed rate mortgage. (A 3/1 hybrid is normally fixed for only 3 years and adjustable afterward. Note though, there are many variations)

But please take into account if your mortgage is now fixed that you would be giving up that security AND might need to refinance the 3/1 hybrid when it begins to adjust in another 36 months.

Secondly, besides considering security, take a look at the numbers. Here is a good place to start. Go to Mortgage Refi Tips And Answers and walk through the steps. Of course afterward, let me know if you have questions.

I have also provided links to more refinancing tips below for your convenience. After reading through them, please let me know if you have more questions.

Take a moment to bookmark Refinancing Advice For Active Duty Marine to your favorites and visit often for more refinancing tips. You can also invite friends to comment on this page or ask another question of their own like you did.

Best wishes,

Ask Kate how to get the best mortgage rates
Ask Kate


P.S. Check out Best Mortgage Rate Blog yourself! It's an entertaining source of mortgage information.

Finding Help You Need for Refinancing

Refinancing Advice - Your opportunity to get down to earth refinance nuts and bolts from a mortgage insider.

Having trouble refinancing your mortgage due to fallen property values? Go to Special Edition Making Home Affordable Options.

USDA Rural Home Loan Refinance with no appraisal, no credit report, and no debt-to-income calculations.

Announcing Kate's Mortgage Information Planner - To save money, get your ducks in a row first.

Are you a homeowner trying to decide if Mortgage Refi is worth the cost?

How To Compare Mortgages - Yes it is enough to make anyone want to toss up their hands.

New! Ask Kate's secret to reducing mortgage refinancing costs. Home buyers should read this too!

Real Estate Investor Loans - Three options for investors.

Surprise, it's a barn! Is a Certificate Of Occupancy necessary for your home mortgage refinance?

Refinance With Cash Out - Where is my loan approval?

Save money using My Special Refinance Formula.

Fresh Refinance Ideas - Reasons why and why not to refinance.

Discover my Secrets To Refinancing based on Robin's story

Low Mortgage Payments For Home Owners - Learn how to ask questions and qualify your lender.

Don't be distracted by refinancing lingo. 10 best kept secrets to Low Mortgage Payments.

A collection of Ask Kate Refinancing Questions and Answers II.

A collection of Ask Kate Refinancing Questions and Answers I.

Click here to add a comment.

You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more